The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1887-05-05

what President Adszns Knaws Abog
the u. p. MANAGEMENT.

NEW YORK, ApIu 2os-1n0 l0guSl
ton into the working and fnancia
management of all railroads that hay
received aid from the government il
bonds was resumed to-day by the com
mission. Ex-Governor Pattison pre-
sided and Commissioner E. Ellery An
derson acted as inquisitor. David Lit
tier was absent. Charles Francis AID
ans occupied the witness chair. III
said he had been president of the Uniol
Pacific road for three years, but knew
almost nothing about it prior TO tina
time. 1t was not his business to lool
into the history of the roads, but *
post himse.f on the consolidated roads
He had heard vague stories that direct
ors Gould, Sidney Dillon and T. L
AmeS had so conducted affairs tina
they were in debt to the company. Mr.
Adams had investigated those charge.
but he was not permitted to state hi
conclusions. He had looked into the
affairs of the Nevada, Omaha, VALLEY
and all branches of the Union Pacific
Each of them has q separate organiza
ton, but the Consolidated is composed
of the Kansas Pacific, Denver Pacific
and the old Union Pacific. He thought
the charter of the Union Pacific con-
sOlidated very narrow. He did not
suppose the road proper had power to
build a mile of branch track under that
charter. Mr.. Adams examined the
Denver & South Park, which was built
by Gov. Evans of Colorado in 1882.
Mr.. Adams had heard who made the
bargain, transferring Governor Evans
road to the Union Pacific, but did not
know who it was. There was strong
competition for possession of the road
=
MIR. Adams thought, had sue
ceeded in closing the purchase for
the road. Prices were much
inflated in Colorado at this time and
the stock in the road was turned over
at an eXtravagant price as it turned out
soon after by Colorado practically col
lapsing. The Evans road was built to
satisfy famous mining boom and car
ried men and tools to spots where holes
had been dug in the ground and
called mines. When the t'boom" col
lapsed the road collapsed. 1t has lost
money every year since.
81 ought to say in justice to the men
who purchased the road that before
the bargain had been completed they
were offered by General Palmer $780,
600 for the bargain. state this on the
word of Mr.. Ames. The net loss in
the road last year was $780,
900. 1t gets it's business from the
travel to and from the mines. The
ups and downs in Colorado are such
that do not think the future of this
branch is hopeless. If they struck
good mine or new mining country or
new mineral was discovered it would
again prosper. There is no chance of
agricultural advancement in that re-
gion. Colorado business, in railroad
parlance, means such as purely min
eral country produces. This branch
has been a burden to us for three
years. knew contract price which
Mr.. Gould agreed to pay Governor
Evans, but it has escaped my mind
now. Like many other things con-
nected with the matters of these side
roads it was charged to the investment
account of which we have a large one
some $50, 600, 900. When we bought
the road there was a bonded debt held
by outsiders of $19, 900, and these to-
gether with the cost of the extension
to Leadville and thence to Gunnison
were provided for by an insurance of
81 $3.50, 900 in consolidated bonds" In
this statement Adams was aided by
Judge John w. Dillon, who was a
spectator. ''These bonds" Mr.. Adams
said, ''are now in the Union Pacific
Treasury"
Mr.. Adams said that Mr.. Brinkens-
dorfer, who had much to do with the
of the old road, and who
now lives at Omaha, was man of eX-
perience and had these contracts. He
knew all about them and could explain
everything. The Nevada Central road
was taken up next. This rC ad is ninety
miles long, and was built on the ex-
pectation of the development of NeVa-
do If TUoS oRnT7irnH nv tho TTnior1 Do
cific in 1881 or 1882, and about the first
thing MIR. Adams did as President was
to throw the branch overheard, as he
could see no further use for it. Mr.. A.
stated that he had carefully inveStigat-
ed the books and did not find that any
for the Nevada Central had
gone for anyone connected with the
Union Pacific. Mr.. Gould had a grant
of development and active railroad sys-
TEN west of Omaha, st. Joe s. Kansas
City, by which deliveries were made
Louis. A part of this scheme was the
purchase of the Kansas Central, which
ran along the northern part of Kansas.
A part of it the Central Branch has sub
but there were manv branch
ers feeding it which were not sub
sidiZed. His scheme contemplated the
tapping of Texas, New Mexico and
the whole West afterward. Mr..
Gould got interested in other matters
and dropped this scheme. The Central
Branch is leased to the Missouri Pacific,
the control of that traffic. The road is
very profitable, as it is in an agricultu-
raj country. The parties interested in
the sale were in no wise interested in
the Union Pacific road. Mr.. Adams
said the stock of the Central Pacific,
Union Pacific and Northern Pacific
were consolidated and taken up by
bonds of the consolidated Union Pa
cific Railway company in 1880, and
under provisional charter later on
$40 ,0O0, 900 was issued. There were
never any other issues. The road had
always paid cash for everything and
there had never been a construction
company in the company. Mr.. Adams
also found the Council Bluffs Street
Railway, road about mile long,
among the properties which the
road had become possessed of in the
former regime. II think the road
bought this street railway because it
facilitated getting up into the town,
and believe we can make it a saleable
piece of property. 1t is good property
to sell.'' The Denver and Marshall
railway, another branch, runs from
D01VSE Utility InllcS 10 Ul0 coal region.
Thirty-ive per cent was paid for that
branch. The Leavenworth and To
peka, running between the Union
Pacific and the Atchison, Topeka and
Santa Fe, was purchased jointly by
these two roads. 1t had $3.50, 900 worth
of stock. It is not far from fifty miles
in length. 1t was bought to connect
with Topeka and it barely pays. 1t
was bought to save it from purchase by
some hostile interest, and as measure
of protection. 1t was not bought by
anyone connected with the Union Pa
cific. The purchasing roads put theiI
guarantee on 81 $3.50, 900 bonds of the
cross road and took the stock. Mr..
Adams thought that this road was nc
longer valuable to the Union Pacific
and he had thought that presently
affairs would shape themselves so thai
this road and the Atchison road could
divide their several joint properties
and perhaps this branch, if owned by
one of them could be made to pay
The Manhattan, Ulmer & Burlington
branch was another with a his
tory similar to those of thu
others. 1t is fifty-six mile.
4 = Il l.